Bosch struggling with production snags despite hopes of chip supply detente

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BERLIN (Reuters) -German automotive supplier Bosch is struggling with disruption at three production sites despite signs of movement in a trade dispute around the chipmaker Nexperia, with thousands of workers impacted, the company said on Tuesday.

“We can currently confirm that production at the Ansbach, Salzgitter, and Braga plants continues to be affected,” a company spokesperson told Reuters.

“We are continuing to prioritise everything we can to serve our customers and avoid production restrictions or keep them to a minimum.”

China and the Netherlands have been locked in a battle for control over Nexperia since the Dutch government seized control of the Chinese-owned Dutch company in late September over fears of technology transfer.

The move prompted the Chinese side to curb exports of the company’s finished products, unleashing panic over possible production snarl-ups in the automotive sector.

Nexperia chips are technologically simple but ubiquitous in car electronic systems and other consumer products.

As the supply crunch slows production, Bosch has been sending workers home when necessary.

In Germany, the company is using state-backed furlough measures “as needed” for between 300 and 400 workers at its Salzgitter site, which has a total workforce of 1,300, and it has furloughed around 650 of the 2,500 employees at its site in Ansbach, the spokesperson said.

At its Braga site in Portugal, some 2,500 of a total 3,300 employees are affected by temporary working time adjustments or furloughs, the spokesperson added.

Bosch said it was monitoring trade policy developments closely and noted “initial steps” towards a political dialogue between the parties involved.

A delegation of senior officials from the Dutch economy ministry are due to visit Beijing this week in an attempt to find a compromise.

(Reporting by Ilona Wissenbach and Rachel More; Editing by Jan Harvey)